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US FTC Sues Intel For Anti-Competitive Practices

Vigile writes "And here Intel was about to get out of 2009 with only a modestly embarrassing year. While Intel and AMD settled their own antitrust and patent lawsuits in November, the FTC didn't think that was good enough and has decided to sue Intel for anti-competitive practices. While the suits in Europe and in the US civil courts have hurt Intel's pocketbook and its reputation, the FTC lawsuit could very likely be the most damaging towards the company's ability to practice business as they see fit. The official hearing is set for September of 2010 but we will likely hear news filtering out about the evidence and charges well before that. One interesting charge that has already arisen: that Intel systematically changed its widely-used compiler to stunt the performance of competing processors."

19 of 230 comments (clear)

  1. Intel by ArbitraryDescriptor · · Score: 4, Funny

    Our competitive practices aren't like your competitive practices.

    1. Re:Intel by MBGMorden · · Score: 4, Interesting

      The thing is they DIDN'T out compete the rest of the market. Intel did many of the same things as Microsoft - ie, strong arming their customers (large corporate customers not individuals) to "encourage" them to sell ONLY Intel chips. Intel may have the edge in performance now but their entire Pentium 4 line was horrendous compared to AMD's offerings (and costed MORE). They still went into almost all computers though because Intel wouldn't let most companies offer AMD chips as an alternative.

      Now they've managed to leap-frog back into the performance lead (they're still more expensive overall), but that doesn't mean that they outcompeted anything. Heck I'm fairly certain that had Intel not behaved as they did AMD's increased profits would have manifested into more R&D investment and AMD might would still be in front for performance.

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      "People who think they know everything are very annoying to those of us who do."-Mark Twain
    2. Re:Intel by will3477 · · Score: 4, Insightful

      You may not be using intel's compiler, but in the scientific community I knew people who wear by it and those same people spend a lot of money on hardware (adding hundreds of nodes to clusters annually).

  2. Re:I especially like.. by InsaneProcessor · · Score: 5, Informative

    The compiler identified the CPU and changed it's behavior to be unoptimized if not the "golden" part. This falsely caused publicly used benchmarks to show competitors parts to be slower.

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    Athiesm is a religion like not collecting stamps is a hobby.
  3. Hopefully this will free up Nvidia to compete by Apple+Acolyte · · Score: 5, Interesting

    Hopefully this will free up Nvidia to continue innovating in the integrated GPU arena. Intel's best attempt at competing against the year-old 9400M apparently only matches half of its performance at best. And wasn't Intel actively preventing Nvidia from competing for inclusion in the newest motherboard designs by failing to license certain Core iX chipset components?

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    Part of the hardcore faithful who believed in Apple long before it was cool again to do so
  4. Re:I especially like.. by plasmacutter · · Score: 4, Informative

    I like the complaint about the compiler. After all, Intel should be required to optimize their compiler for their competitor. To each according to his need...

    The allegation is their compiler can, but deliberately does NOT, apply optimization to code if it detects the processor is AMD.

    This is analogous to video game consoles refusing to use generic memory sticks or hard drives. Of course, intel will try to claim it's more like trying to attach a sata drive to an IDE port, but we all know the instruction sets for X86 are standard across both chips.

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    VLC FOR MAC IS DYING! IF YOU DEVELOP, PLEASE SAVE IT!!
  5. Re:EU I can understand... by fuzzyfuzzyfungus · · Score: 5, Insightful

    Have you considered the possibility that some legal actions are actually about upholding the law, rather than some sinister ulterior motive?

  6. AMD was robbed by byteherder · · Score: 5, Insightful

    Back when AMD's microprocessors were the state of the art (Athlon), they should have had 50% or more of the chip market. Intel only was able to preserve its market share through illegal means. Eventually, through the billions in extra profit they made, they were able to pull ahead in this technology race. AMD was deprived of billions is profit which they could have used for more R&D to make their chips more competitive today. I don't know how you restore a market where one player has been cheating illegally for a decade and now has a monolopy, but Good Luck FTC.

    1. Re:AMD was robbed by MobyDisk · · Score: 4, Insightful

      The reputation that AMD earned with the k5 and k6 was appropriate...Intel holding the lead during the time of the Athlon was as much Intels past ability to make a consistantly reliable product as it was any illegal practice.

      The compatibility issues on those chips was fewer than the compatibility problems with Intel's own chips. But if there is a problem with an Intel chip, the compiler manufacturers work around it, and the OS vendors emulate the broken instruction or code around it. If AMD has a similar problem, there are press releases and everyone suddenly thinks "oh, I need Intel Inside (r)"

      On the flip side, there was a period of a year or two where Intel's 440 motherboards were constantly experiencing compatibility problems. This was around the RDRAM era, which was another blight on Intel. But people continued to buy Intel during that period, even though AMD was winning in reliability AND performance AND price.

      There were fishy things happening during that time. Big OEMs making press releases about switching to AMD, then signing-on with Intel for a few years more. Yeah, maybe they were bluffing to get a bargain. Or maybe Intel did back-door dealings with the decision makers.

    2. Re:AMD was robbed by byteherder · · Score: 5, Insightful

      Is there some speculation in my orginal post. Sure. But remember, this was era when AMD market share was rising very rapidly, >+1% per month. Would they have run out of manufacturing capacity at some point. Possibly. Could they have build more. Sure, if they had the money. But that is exacty the point. Intel made sure they would never get the market share to get the money needed to compete. Never.

      Intel, at the time, had the market share, the fabs and the cash but what they didn't have is a superior product and wouldn't have more several years. If you are Intel what do your do? By any means necessary, your make sure your competitor does not get enough market share or money to threaten your monolopy. If you have the break a few laws in the process, so be it. Limit how much of your competitors chip the computer manufacturers will buy. Illegal but sure. Sell chips below cost. Why not.

      Now they are being called to task for their past actions. Not by just the FTC but by Japan, South Korea, the EU. They just settled a lawsuit from AMD for $1.25 billion.

      I am not saying that AMD is blameless for their current situation. They could have invested more heavily in fab technology. The purchase of ATI was possibly ill advised. They jury is still out on that one. They slipped up with the release of the Barcelona chip. All I am saying is that given a level playing field, things could have turned out much differently.

  7. Re:I especially like.. by fuzzyfuzzyfungus · · Score: 4, Insightful

    There are some differences(3Dnow! is AMD only, SSE isn't present on some AMD chips, and a whole bunch of other minutia).

    Thing is, though, chips declare which features they support: "flags: fpu vme de pse tsc msr pae..." and who made them "vendor_id: GenuineIntel/AuthenticAMD". Intel's compiler, though, was ignoring the feature flags if the vendor_id was not "GenuineIntel". It would be silly to demand that intel support 3Dnow! or any other AMD-specific oddities, or demand that it ensure that the binaries it produces are equally well optimized for the precise architectural details of AMD's CPUs.

    Blatantly ignoring the feature flags on non-intel CPUs, though, is another matter.

  8. Re:Intel compiler not that good on their own parts by MBGMorden · · Score: 4, Informative

    because of the hardware differences, and didn't put in a switch for AMD, well, who says they had to,

    Apparently, the government. You see it wasn't a case where they simply didn't setup their compiler to optimize for AMD's parts. They explicitly made it run worse if you were running non-Intel hardware. Normally that would just be incredibly sleezy, but Intel is quite possibly in a monopoly position, which makes some behavior that's normally just sleezy illegal instead.

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    "People who think they know everything are very annoying to those of us who do."-Mark Twain
  9. Re:Well, duh. by byteherder · · Score: 4, Funny

    There is no conspiracy: This is business. Business is inherently anti-competitive. If I'm competing with you, I want you out of the game, and just like in a video game, I will use combo attacks and drop-kick you right as you get up (repeatedly) to keep you from recovering until you throw the controller at me. That's just how the game is played. (See slashdot, we can avoid car analogies!)

    Let's make the car analogy... In Indy car racing, you are not allowed to smash into your opponent over and over again until his car is a smoking pile of metal and then run him over as he leaves the flaming wreckage. This is against the rules.

    There are rules in business just as in car racing. Intel broke them. Now they have to face the music.

  10. Read the FTC release by RalphBNumbers · · Score: 4, Insightful

    The FTC press release says:

    "To remedy the anticompetitive damage alleged in the complaint, the FTC is seeking an order which includes provisions that would prevent Intel from using threats, bundled prices, or other offers to encourage exclusive deals, hamper competition, or unfairly manipulate the prices of its CPU or GPU chips

    That sounds like a pretty direct strike against Intel's moves in the graphics market lately. Selling an Atom alone for more than the price of the same Atom bundled with a chipset, trying to prevent Nvidia from making chipsets for their Nehalem CPUs, bundling their own GPU on the package of all of their low to mid range next generation CPUs, etc...

    It should be interesting to see how Intel responds to this. It's probably too late to make any major changes to Clarkdale/Arrandale before they ship, so on-package GPUs are definitely coming. But imagine if Intel were required to sell bare dice at fair prices (surprisingly enough, packaging a die is one of the most expensive steps of chipmaking), so that others could do the same thing. Imagine an intel chip with an on-package Nvidia or AMD GPU...

    Sometimes I wonder if computers will always be built around motherboards as we know them. As motherboards shrink, and we start seeing multiple dice on a single package even in low end consumer gear, could the motherboard eventually be replaced with one big multi-die package? It would certainly reduce size and bring part counts down, and I expect it would allow for lower power consumption and higher speeds as well (although, of course, it would make building your own as an enthusiast impractical).

    --
    "The worst tyrannies were the ones where a governance required its own logic on every embedded node." - Vernor Vinge
  11. Re:I especially like.. by InsaneProcessor · · Score: 5, Informative

    Let's break it down. For instructions sets like SSSE3, SSE4, etc. Intel designed bits to identify if these instructions are supported. All competitors comply with these bits. What they did do is: if the part isn't identified as "Genuine INTEL" the compiler stopped code optimizations. This is a provable fact.

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    Athiesm is a religion like not collecting stamps is a hobby.
  12. Re:Well, duh. by Virak · · Score: 4, Informative

    So Intel should be required to test out their competitors products for compatibility with these optimizations, as well as its own products?

    Are you fucking kidding me? Intel didn't just "not test" it with AMD's stuff, they went out of their way to make sure it wouldn't work on it. And if AMD's processors didn't run x86 code properly a whole lot more people would notice then just the ones using Intel's compilers. Do you even have any clue how a compiler works?

    I'm not defending Intel here

    You are saying that what Intel did with their compiler is perfectly legitimate. I don't see how you can spin that as anything but defending them.

    the issue is whether Intel is allowed control over its own products

    And that issue is long-settled: they are not allowed control over their own products to they extent they can harm competition in the market as they please. The only possible "issue" is whether their actions did or did not illegally harm competition.

    If you ask me, the solution is to unbundle the CPU from the rest of the system architecture. I know, it's difficult to imagine even amongst IT people because the CPU has long been the center of the system -- everything is designed around that. Well, maybe it's time for that to change. And the FTC should put its focus there -- just as we unbundled Internet Explorer from Windows -- the software, it's time to unbundle the hardware.

    Okay, now I'm definitely sure you don't understand the slightest bit about the technology involved. The CPU is already "unbundled" from everything to the maximum extent technically possible. They cannot "unbundle" it any further. The code would've run just fine on AMD's chips precisely because it is "unbundled" and is an interchangeable piece of hardware with multiple independent implementations. Intel has absolutely no defense here, certainly not on technical grounds, and you're just making yourself look like a fool trying to argue for them.

  13. Re:I especially like.. by EndlessNameless · · Score: 4, Insightful

    //Is there? No seriously, is there?//

    Yes, there is quite a difference between not optimizing for your competitor's product and deliberately degrading performance for your competitor's product.

    In the former case, there is no additional effort involved; there is a simple decision not to expend resources where they will not provide a return on the investment.

    In the latter case, there is a deliberate effort to expend resources with the intention of harming your competitor. And while anti-competitive behaviour may be an unfortunate norm in American business, it is also an illegal behaviour for a company in a monopoly position.

    Having hopefully clarified your sloppy manner of thinking (lest others accept it), we can agree your question was deliberately inflammatory and move on.

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    According to the latest ruleset, this post should be modded as Vorpal Flamebait +5.
  14. Re:I especially like.. by cheesybagel · · Score: 4, Informative

    No it was much worse than that. There is a CPU instruction named CPUID which tells you the processor family, manufacturer, and has a set of feature flags saying which extensions (e.g. SSE, SSE 2, 3DNow) that particular processor supports. Intel's compiler enabled SSE optimizations only if the processor manufacturer string was "GenuineIntel" and the processor family number was high enough, instead of checking in the flags vector if the processor supported SSE.